Tag: VC

A New Thing: Emerge Venture Lab

On 22/10/2013

Some of you might have seen it (OK, most won’t have) but I have a couple of new gigs going, one of which is Emerge Venture Lab‘s Emerge Education programme. It launched last week in style on L39 in Canary Wharf (yes, we were looking at you, you bankers).

Be it as it may, I am now a Venture Partner there. And I am thrilled to be there. Swanky title, you say, what else? Here’s what: Emerge merged (oooh) a couple of rather sweet things into one coherent offering, namely:

The guys come out of Oxford University’s prestigious Said Business School and have hence, per se, a pretty awesome pedigree AND network. But these are not your usual millenials. They put their talent to hard, hard work and assembled a team of mentors that is mind-bogglingly good: you will find a network of insanely gifted (and successful) entrepreneurs there that comprise the true heavyweights of today: tons of entrepreneurs, investors, big corporates (yes, Google is also there) and public ventures (like NESTA) are there.
I would suggest (but of course I would say that) that your chances of finding follow-on funding are better here than anywhere else because of the above. Why (besides that bloody awesome advisor list)? Oh, just read on…
Emerge have managed to compile a list of top-tier educational institutions that will work with you to hone your application or service before it hits the market. So the next time Mr Big Investor asks you if you have any proof it works, you will just coolly whip out that Oxford Uni study. Not bad, huh? And if you think that this still is all my usual BS, just think of the sell-in cycles in education. Then pause. Then think of what Oxford University on your PowerPoint might actually do for you. With me?

Everything aside, I am truly excited by what Emerge has achieved in a very short space of time. They have managed to navigate the insanely complex and dangerous seas of the educational minefields to assemble something that should accelerate aspiring ventures in the field in the true sense of the word. If you come out of this programme, you will have had your product vetted not only by passionate entrepreneurs but also by real clients. And that, my friends, is pretty astonishing for an accelerator programme, don’t you think?

And, yes, that’s why I am excited, and, yes, that’s why I am here! Get in touch, talk to us, apply to the programme here!

Godspeed!

Momentum, a Mobile Accelerator in the Valley

By Volker

On 25/08/2013

In Deals, Events

Here’s something cool, a mobile accelerator run by people who actually know mobile, namely the good folks from Mobile Monday (disclosure: I am a co-founder of Mobile Monday Manchester). For those who don’t know (and I don’t expect many of the readers of this blog to being that ignorant… 😉 ): Mobile Monday has a global presence in over 140 cities across 50 different countries. As part of Mobile Monday, participants will get greater global exposure with leading brands to help foster business relationships and potentially commercial deals. It works, believe me!

This is a 12-week program (from 23 September – 6 December), run at RocketSpace in Silicon Valley with the aim to help accelerate mobile startups. They will select 8-10 startups from around the globe to participate in each class. If you are not based in the Bay Area, you’d have to cover your own housing and living though (which they say should amount to $2,500/month; also: you need to sort out your own visa should you need one though they’ll help you).

The program is designed for startup founders. It consists of weekly workshops and dinners lead by leaders of “global brands” who will help mentor and work closely with participating companies. You will have the opportunity to pitch their “dedicated” team of VCs and angels. The program will end with a Demo Day attended by industry leaders, VCs, and the press. So it’s pretty much the usual stuff. However, it being run by the MoMo folks, you can probably expect a rather good pick from the mobile world!

Here are the minimum criteria (and you will see from this that you actually have to have something already; this is an accelerator, not an incubator):

At least 2 people in the startup (two’s company…);
Shipping live product;
Angel funding or Participation of a startup program or Experience as a founder in a prior startup;
Pre-series A funding.

Each application will be scored on five criteria:

Team
Product
Market viability
Traction (clients, users, customers)
Fit for mobile industry

All Mobile Monday Accelerator events will be held in the San Francisco bay area. Office space at the RocketSpace Innovation Campus (San Francisco downtown) is provided free to all accelerator class participants. RocketSpace is home to Fortune 500s like, T-Mobile, GM, DoCoMo, Microsoft, ABInBev, LEGO and to 150+ startups including Spotify, Supercell and HasOffers (yup, that is straight from their sales pitch).

The program currently provides 50+ of the best in mobile mentors; Samsung, Sony, Twitter, Facebook, AOL, ESPN, Polariod, PayPal, Intuit, The Weather Channel, Hotel Tonight, Millenial Media and more… (yup, again from their pitch)

Each week, they’ll host a workshop in the San Francisco bay area at our offices or a partner’s office on the usual topics like:

Marketing
Negotiation
Monetization
Legal
Analytics and Tracking (if you still haven’t got this)
UI/UX Best Practices
Scaling (under the heading “luxury problems” but immensely important)
Selling to the Enterprise
M&A How to sell your startup (my guess is they won’t give guarantees though…)
Effective Pitching

If you want to get into this (and, hey, it is just about the time when the weather in certain areas get somewhat yucky), you can apply here. Good luck!

Twitter Raises More Cash

By Volker

On 14/02/2009

I and many others had been speculating if they did or did not need new money (founder Biz Stone says they didn’t) and amidst people scraping together money, fearing long, cold winters of recession, Twitter raised a more than respectable third round of $35m led by tier-1 VCs Benchmark and IVP. This can, according to some sources, still grow as existing investors want to protect their dilution (which would make sense, I suppose). Congrats, folks!

According to Stone’s blog, they do not need the money. However, they felt the offer was so good that they could not say “no”… As they would say…

What is it for then? And, ah yes, they want to use some of the capital to “help build their revenue-generating projects”. And that’s about time, too! On the other hand, let’s not be too derogative: they have been growing at an amazing speed (the numbers I had were 780% last year; Biz Stone now ups them to more than 900%) and with the media making the right noises and even secondary Twitter businesses being funded (which often do have at least the hint of a “how-to-make-money” set-up though), there certainly is something in this. That Twitter has its uses for businesses is a tale that you can read about from hundreds, including the traffic kings Guy Kawasaki and Peter Cashmore (Mashable); the Twittersphere is full of “top-20-business-uses” style how-to guides.

How will Twitter itself monetize on this? Rumours are flying as always and they range from paid-for corporate accounts to advertising to, presumably, big-media tie-ins. There is so much room to look when you are commanding this big and active a user base that there a plenty of angles; the Twitterati may be younger and poorer than the average (there’s recently been a “Twitter census“)but they are at home in the new social media and they are ultra-mobile with a higher proportion on laptop and mobile usage. Welcome to the future then! I had suggested a few possible avenues previously; and if even I can do it, I am sure they can do it… 😉

Oh, and if you wish, follow me on Twitter here.

Twitter on the Money Trail again…

By Volker

On 27/01/2009

In Deals, Social

Twitter is this phenomenon of which some people say it is the business that never was. Not that Twitter never was but that it never was a business… which is why they apparently need fresh money, or more specifically $20m, or so it is said (see also here) The valuation? A cool $250m. A lot, you say? Well, they allegedly recently turned down a $500m acquisition offer from Facebook, so it’s a bargain!

Now, one of the issues they are facing is (never mind the unresolved business model) that a) they need to bulk up on infrastructure to cater for the 750%+ growth in 2008 and b) (OK, there are probably more reasons) they are trying to bring back SMS notifications to the UK (which it stopped last summer claiming it cost them up to $1,000 per user p.a.). And on the latter I wonder why: does anyone still uses this? I am using Twitterberry, cooler users use any one of a plethora of iPhone clients, and there are enough clients for “other” phones out there, too. It is more convenient, more powerful, a better interface and – for Twitter – much, much cheaper. If they are not satisfied with it, shouldn’t they perhaps invest some $100k to build a Twitter client for all phones? I mean, it’s not THAT complex…

As to business model, I am fairly confident that they will be able to translate this staggering amount of traffic into $$$. Their recent acquisition of Summize, which provides a newly introduced search option for Twitter, is one step. My hunch would be that they will utilize some of the momentum their growth afforded them will allow them to acquire some of the value-adding services (GigaOM names Twitpic and Stockwits) as well as ad-funded clients (e.g. Twitterific serves you – on the free version – an ad per hour of use).

Oh, and yes, I am a fan and Twitterer. Follow me here (vhirsch). And, no, if you’re an investor, Stephen Fry‘s account on why this is so great will not necessarily convince you it makes sense (although he is VERY enthusiastic about it) 😉

Modu is raising a big round

By Volker

On 25/03/2008

One of the quirky stars of this year’s Mobile World Congress, Modu, is apparently scoring a large round of funding, namely to the tune of $100m. The company adds to $20m funding previously raised from its founder Dov Moran (who had sold his previous business for $1.6bn to SanDisk), two Israeli funds, namely Genesis Partners and Gemini, and indeed SanDisk. The round values modu pre-money at $150m, which is healthy for an 18-month-old company but, according to the press, still $50m less of what Mr Moran had hoped to score.

Modu is an interesting concept that shrinks the key bit of the phone (including SIM card, address book, etc to a matchbox size, which then can be slipped into a variety of so-called “jackets”, fancy phones that can be adapted to whichever occasion the user might find appropriate or indeed “mates”, which enable other consumer electronics devices with the bliss of connectivity and the like.

The challenge may well be that the jackets and mates are supposed to be developed by third parties, and to convince enough players to do that (which is arguably required to create a compelling offering) might be the biggest challenge.

In time for Barcelona, Modu had announced a number of partnerships, including operators Vimpelcom (Russia), Cellcom (Israel) and TIM (Italy). Blaupunkt, GPS specialists Magellan Navigations and – again – SanDisk have apparently pledged support, too. On the content side, the world’s largest music company Universal Music, navigation service provider TeleAtlas and a few more are in the mix.

I really do like it and I really hope that they’ll pull it off. Somewhat clearly thought out of the box here, and that deserves praise!

Update: Modu has just received recognition of a Guinness World Record for the lightest mobile phone (at 40.1 grams and dimensions of 72.1mm x 37.6mm x 7.8mm).

Twistbox on the money

By Volker

On 11/09/2007

In Deals

Twistbox has announced it has raised a healthy $19.5m from ValueAct Capital (rather secretive firm: you require a user name and password even for accessing the “overview” section of their site) and “other strategic investors”. It also announced that former Vodafone Global content supremo Graeme Ferguson has joined its board of directors.

Twistbox was the result of the acquisition of German developer Charismatix (authors of e.g. Anno 1701, Taito’s Arkanoid, etc) by (predominantly) mobile adult (which they call “late night”) content provider Waat Media from LA (who work with the likes of Private and Vivid)After a lot of buzz around them a while ago (and every year again at 3GSM when everyone gets gibberish over their licensees’ parties – no, no scantily-clad girls there worth mentioning, ever…), it had gone a bit quiet. The last we heard was a deal they signed with Fashion TV.

Presumably, the new money and director will get them out into the public eye a bit more again. According to the release, they plan to use the funds to launch web-to-mobile storefronts and play-for-prices games. They also want to push into advertising (but then, who doesn’t?).

We all suspect there’s money in this “late night” content but little has been seen to quantify the opportunity. Juniper said in 2005 it was $1bn. Forbes didn’t quantify in 2006. I have seen analysts who put the share of erotic games to 12% of the total mobile gaming sector, ranking them above racing and arcade games (7% and 5% respectively) but that’s somewhat unconfirmed. Moreover, video and pics will presumably be even hotter sellers – if and when they get through the varying publishing thresholds in the different countries (from PG13 in the US all the way to “behind-the-curtain” adult content in some European countries. An overview on various attempts to put a number to that market can be found here (courtesy of adult mobile pioneers, Cherrysauce).

As it will in general still be arguably safe to say that sex probably still sells, we might expect Twistbox to go on to further strengths. Just get your parties up a notch, guys… 😉

Finally, a note to all you dear readers: this post contains links to adult sites. Do NOT click if you are offended by adult content.

Venture Capital: Kawasaki's hints on how to get to it…

By Volker

On 08/04/2007

This post is not strictly mobile (it could be used for mobile ventures though, too, and, besides, why does it have to?).

In any event, the intelligent and funny posts of Guy Kawasaki (amongst other things blogger, early-stage VC and previous big gun at Apple) are really good reading. So: here’s his take on “How to get the Attention of a Venture Capitalist” although, in this case, the treat of Guy’s colleague at Garage, Bill Reichert, might be even more relevant: it should actually helps you to also KEEP that VC’s attention, so make sure to also check out Bill’s notes on “How to Fix your Pitch“.